Question

1) Identify the following statements as a benefit (B), disbenefit (D), or cost (C):

a) Cost of fish from a hatchery to stock the lake at a state park.

b) Less tire wear because of smoother road surfaces.

c) School overcrowding because of a military base expansion.

2) The two alternatives shown below are being evaluated for improving security at the Webb County Jail. Select one based on a B/C analysis at an interest rate of 7% per year.

	Infrared cameras	Motion sensors
First cost, $	-38,000	-87,000
Annual maintenance & operation, $ per year	-49,000	-64,000
Benefits, $ per year	110,000	160,000
Disbenefits, $ per year	-26,000	--
Life, years	10	10

Answer 1

Cost-Benefit analysis is an important aspect for every decision making. If the cost(benefits) of a particular action is more than the benefits(cost) that can be yielded from it, then that action is discouraged (encouraged).

endivg for weir and ar has learened epansian: D gxifivg 44 Crowded pla areas, annat ,13,00 o 1,1 Tota. Ben llit (4) Ģer year) : 00 0

For Motion Seusor ^llur